A card reader and app that turns smartphones and tablet devices like the iPad into mobile payments terminals was launched to the UK market this week by social payment company iZettle

Costing about £20, it plugs into the smartphone or tablet and takes seconds to complete a secure transaction. iZettle merchants are charged 2.75 per cent of each payment.

The mini chip-card readers can be purchased exclusively in 297 newly-designed EE stores across the country and from EE’s telesales channel. Bought from the EE  store, it comes with a £20 voucher redeemable against transaction charges. The associated app is free to download.

iZettle say their reader can be used with iPhones, iPads, and more than a dozen 2.1 and higher Android smartphones and tablets including the Samsung Galaxy range. It can accept Visa, MasterCard, American Express and Diners Club payments, with no lengthy sign up processes, no set up fees, no monthly fees and no minimum spend.

The reader is already used by more than 75,000 small businesses and individuals in six countries. The full UK launch follows a Beta test with 4,000 users over the past six months.

Gerry McQuade, chief marketing officer at EE said: “iZettle is a revolution for small businesses and consumers. The aim of our new superfast EE brand is to make businesses’ digital lives easier and ultimately more profitable through technology. Businesses and consumers are on the cusp of mobile payment transformation and we are delighted to bring iZettle to market.”

EE is the first company in the UK to provide 4G mobile services alongside fixed-line fibre. It runs the Orange, T-Mobile and EE brands in the UK. Its 4G service will cover a third of the population by the end of 2012 and its fibre service will cover 50% of the population by the end of the year.

www. izettle.com